Crazy Eddie was a consumer electronics retail chain in the Northeastern United States. It was founded in 1969 in New York City by Eddie Antar and Sam M. Antar and initially operated as ERS Electronics (named for Eddie, Rose, and Sam; Rose and Sam were Eddie Antar's parents). The chain expanded in the New York metropolitan area and became known for discount pricing and extensive radio and television advertising featuring spokesperson Jerry Carroll. At its peak, Crazy Eddie operated 43 stores in four states and reported more than $300 million in sales.[1]
The company engaged in fraudulent business practices, including underreporting income, skimming sales tax receipts, and paying employees off the books. During the process of becoming a public company, it continued to engage in fraud, including overstating profits and inflating inventory. Eddie Antar resigned from the company in December 1986 after selling company stock. In November 1987, the board approved the sale of the company and members of the Antar family were removed from management. In 1989, Crazy Eddie filed for bankruptcy and was liquidated.
In February 1987, the United States Attorney's Office for the District of New Jersey began a federal grand jury investigation into Crazy Eddie's finances. In September 1987, the United States Securities and Exchange Commission initiated an investigation into alleged violations of federal securities laws by company officers and employees. Eddie Antar later fled to Israel in February 1990 and was returned to the United States in January 1993. His 1993 conviction on fraud charges was overturned on appeal, and he later pleaded guilty in 1996. In 1997, Antar was sentenced to eight years in prison and assessed fines. He was released in 1999[2] and died in 2016.
Background
Eddie Antar (December 18, 1947–September 10, 2016) was born in Brooklyn, New York City, to a family of Syrian Jewish origin. His grandparents moved to Brooklyn from Aleppo, Syria. Antar's father, Sam Antar, was a retailer.[3]
The predecessor to Crazy Eddie was a consumer electronics store called Sight and Sound. It was operated by ERS Electronics, a company owned by Sam M. Antar, Eddie Antar, and Eddie Antar's cousin Ronnie Gindi. Sight and Sound, located on Kings Highway in Brooklyn, began operations in 1969. Eddie Antar became known as "Crazy Eddie" for his sales approach. Within eighteen months, the store was near bankruptcy.[3] Eddie Antar later bought out Gindi's ownership stake, and Sam M. Antar retained an ownership interest while leaving day-to-day operations to Eddie Antar. In 1971, the Kings Highway store was renamed Crazy Eddie.
During the 1970s, the company expanded beyond Brooklyn. A second location opened in Syosset, New York, in 1973, followed by a third location in Greenwich Village in 1975. The company established a corporate office on Coney Island Avenue in Brooklyn that year.[3] By 1977, it had opened additional stores, including locations in
Advertising
Crazy Eddie advertising in the New York metropolitan area featured Jerry Carroll. The association began in 1972, when Carroll was a radio disc jockey known as "Dr. Jerry" at WPIX-FM. Antar purchased on-air advertising and Carroll delivered the slogan "his prices are insane" in an exaggerated style. Antar requested that Carroll repeat the delivery consistently in later advertisements.[3]
Carroll began appearing in television commercials for Crazy Eddie in 1975 and continued for much of the next fifteen years.[3] One recurring promotion was the chain's "Christmas in August" sale. Carroll also appeared in a Spanish-language advertisement, without a speaking role.
During the 1980s, more than 7,500 radio and television advertisements were broadcast in the tri-state area.[4] Crazy Eddie also produced a commercial depicting Carroll as a superhero character. Warner Communications sued the chain over that advertisement; the dispute was later settled.[5]
Fraud and decline
Crazy Eddie management engaged in tax and accounting fraud, including falsifying records to reduce taxable income.[10] The company also paid employees off the books and skimmed cash receipts. According to published accounts, portions of the proceeds were deposited in Israeli bank accounts beginning in 1979, and the family deposited millions of dollars in offshore accounts during the early 1980s.[3]
By the early 1980s, the company prepared to become publicly traded. One method described in published accounts was reducing the amount of cash being skimmed, which increased reported earnings and profit margins. Between 1980 and 1983, reported profit growth exceeded the company's underlying profit growth, according to accounts of the fraud.[11]
Crazy Eddie held its initial public offering on September 13, 1984 (former symbol: CRZY). Shares, which were traded on the NASDAQ, initially sold for $8. By early 1986, the stock traded above $75 per share.[12]
Aftermath
After the chain closed, multiple groups acquired or used the Crazy Eddie trademark for revival attempts. In 1990, a New Jersey-based investment group led by Alex Adjmi announced plans to reopen stores, but the effort did not proceed.[20]
In 1998, relatives of the Antar family reopened a store in Wayne, New Jersey and launched an online venture, crazyeddieonline.com.[21] The business did not expand beyond the Wayne location and later closed.
In the early 2000s, the brand was used for online retail operations under various owners. The trademark was later acquired by Trident Growth Fund, which attempted to auction the brand and the domain name crazyeddie.com in 2006.[22] In 2009, businessman Jack Gemal began an online retail venture using the Crazy Eddie name and the website pricesareinsane.com.[23] The business later ceased operations. As of 2018, the Crazy Eddie trademark was listed as abandoned.[24]
2022 book
In August 2022, journalist Gary Weiss published Retail Gangster, a book about Crazy Eddie and the fraud committed by company leadership.[29]
Legacy
Crazy Eddie has been referenced in film and television, including Splash, The Brave Little Toaster, Futurama, The Accountant, Russian Doll, and X-Men '97.
Further reading
- Schulman, Michael. "Remembering Crazy Eddie: His Prices Were Insane". The New Yorker, September 17, 2016.
- Weiss, Gary. Retail Gangster: The Insane, Real-Life Story of Crazy Eddie. Hachette, 2022. ISBN 9780306924569
External links
References
- Ben Yaks. Eddie Antar, "Crazy Eddie" Electronics Store Founder, Dead At 68 Gothamist, September 11, 2016, retrieved December 25, 2016^
- Herb Greenberg. Crazy Eddie' Antar's not so 'insane' view of the world MarketWatch.com, June 24, 2007^
- Wells, Joseph T. Frankensteins of Fraud: The 20th Century's Top Ten White-Collar Criminals. Obsidian Pub. Co., 2000; ISBN 1-889277-25-8^